New Developments in Histadrut Corruption Probe Involve Municipal Official

A new, dramatic development has emerged in the "Handshake" corruption investigation, which has already implicated senior Histadrut officials, including Chairman Arnon Bar-David, on suspicion of fraud, cronyism, and money laundering. On Sunday, Israel Police announced that a new sub-affair is being investigated by the National Fraud Investigation Unit (LAHAV 433) concerning a senior municipal official in central Israel. This official is suspected of having illicit ties with an insurance agent who was previously investigated in the main case.

As part of the ongoing investigation, police detained the senior official on Sunday morning, searched his home and municipal office, and seized documents and digital media. Other individuals involved have also been summoned for questioning at the LAHAV 433 offices. The National Fraud Investigation Unit recently seized tens of millions of shekels in connection with the investigation into the accounts of the Menora insurance company and some of its senior executives.

Under the Anti-Money Laundering Law, 183 million shekels have been frozen: 93 million shekels from Menora Mivtachim company accounts and 90 million shekels from the personal accounts of five of the company's senior executives. These executives, identified as Ari Kalman, Michael Kalman, Yehuda Ben Asaig, Orit Kremer, and Eran Grippel, have been questioned by police as the investigation continues into what is described as one of the largest and most serious cases in Israel's history.